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The Federal Reserve-induced market swoon gave the real-money Inflation-Protected Income Growth portfolio the chance to buy a stock it had been holding out for for several months.

Last week, Federal Reserve Chairman Ben Bernanke acknowledged that as economic conditions improved, he'd start tapering his bond-buying stimulus program. Markets tumbled on the news, but it was a wonderful gift from the Fed Chairman to patient investors looking to pick up companies at reasonable prices.

For the real-money Inflation-Protected Income Growth portfolio, it meant that the long-standing limit order to buy energy pipeline giant Kinder Morgan (NYSE:KMI) below $36 finally triggered on Friday. That purchase means that the original $30,000 invested in the iPIG portfolio has now been completely allocated to stocks. With all that cash allocated, the next test is whether the companies in the portfolio will continue their strings of paying and raising their dividends.

Speaking of dividends Of the previously existing holdings in the portfolio, two paid their dividends last week: fast-food giant McDonald's (NYSE:MCD) and electricity generator NV Energy (NYSE:NVE). McDonald's $0.77 per share added $12.32 to the iPIG portfolio's coffers and was the company's third consecutive quarterly dividend at that rate. NV Energy's $0.19 per share handed $15.96 to the iPIG portfolio and was the second quarterly payout at that level.

As great as those dividends have been, NV Energy is in the process of being bought out by Warren Buffett's company, insurance giant Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B). Berkshire Hathaway is adding NV Energy to its MidAmercian Energy subsidiary, increasing that company's energy-generating capabilities. That buyout is for cash, and because Berkshire Hathaway doesn't pay dividends, the iPIG portfolio will be parting with NV Energy at or before the completion of that transaction.

As the buyout is expected to close in the first quarter of 2014, there's still some time to figure out what company will replace those NV Energy shares. If a particularly compelling one comes along at a bargain price that fits the iPIG portfolio's dividend growth, valuation, and diversification-oriented strategy, NV Energy will be sold to replace it with that other pick. If not, then the iPIG portfolio will collect any remaining NV Energy dividends until bidding the company farewell.

As for the rest of the portfolio... Of course, the news wasn't all positive for the iPIG portfolio, as the same Fed-induced market sell-off that let it buy Kinder Morgan stock also knocked down many of its other holdings, too. All told, the iPIG portfolio lost around $527 since the prior week's update, to end last week at $33,963.68. Still, that's a better than 13% return in just over six months since the portfolio's launch, which is nothing to sneeze at. A snapshot of the portfolio's state as of last Friday appears below:

The Motley Fool owns shares of Berkshire Hathaway, Hasbro, Kinder Morgan, McDonald's, Microsoft, Raytheon, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Author

Chuck Saletta has been a regular Fool contributor since 2004. His investing style has been inspired by Benjamin Graham's Value Investing strategy. Chuck also can be found on the "Inside Value" discussion boards as a Home Fool.